TORONTO, Oct. 20, 2020 /CNW/ - CI Financial Corp.
("CI") (TSX: CIX) today announced it has completed the acquisition
of a majority interest in Aligned Capital Partners Inc. ("Aligned
Capital"), a full-service investment advisory firm based in
Burlington, Ontario with over 200
financial advisors administering approximately $10 billion in assets.
The acquisition, which was first announced on August 5, 2020, significantly expands CI's
presence in the Canadian wealth management sector and increases
CI's total assets to $204 billion –
exceeding $200 billion for the first
time in the company's history. In Canada, CI now has approximately $61 billion in wealth management assets – a 20%
increase – and 1,100 advisor teams. Including CI's U.S. businesses,
CI's wealth management assets now total a record $76 billion. (Totals based on assets as of
September 30, 2020.)
"We are proud to welcome Aligned Capital and its advisors to the
CI Financial group," said Kurt
MacAlpine, CI Chief Executive Officer. "The Aligned team has
achieved rapid growth due to its innovation, exceptional support
for advisors and commitment to improving clients' lives. The firm
is an excellent fit for CI."
Aligned Capital achieved revenue growth of 1,237% from
2013-2018, ranking first in wealth management, sixth in financial
services and 78th overall on the 2019 Growth 500 list of
Canada's fastest-growing
companies. The company will continue to be operated by its existing
management team led by Christopher Enright, Founding Partner,
President and Managing Director, and Michael Greer, Founding Partner, Executive
Vice-President and Managing Director.
"CI's financial strength and extensive experience in wealth
management make them the ideal partner for us, our advisors and our
clients," said Mr. Enright. "Most importantly, we share a vision
for wealth management centred on supporting advisors with the tools
and resources they need to provide a high level of service
customized to the individual objectives of each client."
"This transaction is a major step forward in executing on our
strategic priority of expanding CI's wealth management platform,"
said Mr. MacAlpine. "For the year-to-date, we have onboarded
$27 billion in new advisor assets,
versus $1 billion in each of 2019,
2018, and 2017. Our growing scale in wealth management will allow
us to realize important synergies while supporting continued
investment in enhanced services for clients and advisors."
In addition to the acquisition of Aligned Capital, CI has built
its wealth management platform through growth in its existing
Canadian wealth business, which includes Assante Wealth Management
(Canada) Limited and CI Private
Counsel LP, and through six direct acquisitions of U.S. registered
investment advisor ("RIA") firms and three indirect transactions
(made by the affiliated RIAs).
CI has agreed to acquire Bowling Portfolio Management LLC of
Cincinnati, Ohio, and holds
ownership interests in:
- Balasa Dinverno Foltz LLC ("BDF") of Itasca, Illinois
- The Cabana Group, LLC, of Fayetteville, Arkansas
- Congress Wealth Management, LLC of Boston, Massachusetts
- One Capital Management, LLC, of Westlake Village, California
- Surevest, LLC, of Phoenix,
Arizona.
In 2019, CI adopted the strategic priorities of expanding its
wealth management platform, as well as modernizing its asset
management business and globalizing the firm.
About CI Financial
CI Financial Corp. (TSX: CIX) is an
independent company offering global asset management and wealth
management advisory services. CI's primary asset management
businesses are CI Investments Inc. and GSFM Pty Ltd., and it
operates in wealth management through Assante Wealth Management
(Canada) Ltd., CI Private Counsel
LP, CI Direct Investing (WealthBar Financial Services Inc.), CI
Investment Services (BBS Securities Inc.), Balasa Dinverno Foltz
LLC, The Cabana Group, LLC, Congress Wealth Management, LLC, One
Capital Management, LLC and Surevest LLC. Further information is
available at www.cifinancial.com.
All financial amounts in Canadian dollars unless otherwise
specified.
The Growth 500 rankings are compiled annually by Canadian
Business based on five-year revenue growth. Companies must apply to
be considered. For more information, go to:
https://www.canadianbusiness.com/growth-500-canadas-fastest-growing-companies/.
This press release contains forward-looking statements
concerning anticipated future events, results, circumstances,
performance or expectations with respect to CI Financial Corp.
("CI") and its products and services, including its business
operations, strategy and financial performance and condition.
Forward-looking statements are typically identified by words such
as "believe", "expect", "foresee", "forecast", "anticipate",
"intend", "estimate", "goal", "plan" and "project" and similar
references to future periods, or conditional verbs such as "will",
"may", "should", "could" or "would". These statements are not
historical facts but instead represent management beliefs regarding
future events, many of which by their nature are inherently
uncertain and beyond management's control. Although
management believes that the expectations reflected in such
forward-looking statements are based on reasonable assumptions,
such statements involve risks and uncertainties. The material
factors and assumptions applied in reaching the conclusions
contained in these forward-looking statements include that the
investment fund industry will remain stable and that interest rates
will remain relatively stable. Factors that could cause
actual results to differ materially from expectations include,
among other things, general economic and market conditions,
including interest and foreign exchange rates, global financial
markets, changes in government regulations or in tax laws, industry
competition, technological developments and other factors described
or discussed in CI's disclosure materials filed with applicable
securities regulatory authorities from time to time. The foregoing
list is not exhaustive and the reader is cautioned to consider
these and other factors carefully and not to place undue reliance
on forward-looking statements. Other than as specifically required
by applicable law, CI undertakes no obligation to update or alter
any forward-looking statement after the date on which it is made,
whether to reflect new information, future events or
otherwise.
SOURCE CI Financial Corp.